Many apartment lessees have wondered, as the temperature skyrockets, whether the existing cooling systems in their homes are actually working as well as they could. We produced the following report to answer a surprisingly complex question: how much does it cost to cool an apartment by size and climate?
Our analysis relied on the following principles:
- Cities face roughly the same amount of cooling degree days on average, or times when the air conditioner must run
- While utility prices have risen, the most accurate measure is still the Department of Energy’s most recent electricity costs across states. While many large cities have their own power systems, this enabled an apples-to-apples comparison.
- Southern states and Northern states have different SEER ratings, but the difference of 14 versus 15 SEER is relatively small, so we relied on the more efficient Southern models.
Actual Cost to Cool an Apartment by Size, Climate
| City | 1-BR (725 sq ft) | 2-BR (975 sq ft) | 3-BR (1,100 sq ft) |
|---|---|---|---|
| Detroit | $214 | $288 | $325 |
| NYC | $469 | $630 | $711 |
| Chicago | $277 | $372 | $420 |
| Pittsburgh | $205 | $275 | $310 |
| St. Louis | $323 | $434 | $490 |
| Milwaukee | $221 | $297 | $335 |
| Los Angeles | $385 | $518 | $584 |
| Houston | $630 | $847 | $955 |
| Phoenix | $945 | $1,270 | $1,433 |
| Philadelphia | $294 | $395 | $446 |
| San Antonio | $630 | $847 | $955 |
| San Diego | $350 | $470 | $530 |
| Dallas | $588 | $790 | $891 |
| San Jose | $252 | $339 | $382 |
Note: These estimates are based on available data. Actual costs may vary
Quick Note on Terms
A quick note on jargon: air conditioning professionals still rely on terms like tonnage of heat transfer, cooling and heating degree days, and SEER. Without getting too far into the weeds, the tons listed for an air conditioner represent how much heat energy it can transfer into or outside of a space. Cooling degree days are the total number of hours (divided by 24), that the air conditioning unit or heat pump must operate and are monitored by NOAA.
Finally, the seasonal efficiency effectiveness rating (SEER) is an efficiency rating that states how well a unit transfers heat energy without loss. An effective comparison would be the miles per gallon EPA rating for a car or SUV.
Upgrading’s Effect on Actual Cost to Cool an Apartment by Size
When looking at efficiency, heat pumps and other high-efficiency cooling options can make a substantial difference in cooling costs during the hot summer months. Rather than create a massive table that included each city, we took the average number of cooling degree days in the United States and compared the costs when upgrading to more efficient options. We specifically selected a SEER 18 model and a SEER 20 to represent the middle and upper ends of savings. Below are the results, and they’re particularly notable:
Air Conditioning Cost Comparison by SEER Rating
| Apartment Size | SEER 15 | SEER 18 | SEER 20 |
|---|---|---|---|
| 1-BR (725 sq ft) | $488 | $407 | $366 |
| 2-BR (975 sq ft) | $656 | $547 | $492 |
| 3-BR (1,100 sq ft) | $740 | $617 | $555 |
Saving more than 100 dollars per summer is nothing to sniff at, even when it comes to apartment dwellers who may already be paying a significant amount of rent. But that raises a second issue: since very few apartment dwellers get to choose their heating and cooling equipment, how would one incentivize a landlord? In several states, it comes down to dollars and a little bit of sense.
Pure Michigan Savings – Why Upgrading to a Heat Pump Makes More Sense
While electricity prices could spike, they are relatively reasonable for most Americans and not subject to tremendous swings. We had originally calculated the time to payback for high-efficiency heat pumps with 18-20+ SEER but found that the savings would not cancel out the cost of the higher-efficiency models.
However, in Michigan, the state also offers a significant rebate, and it’s not the only one. For the below table, we took the maximum allowable tax rebate of $8,000 for units that were designed to be 20 percent more efficient than current models (nearly every heat pump qualifies). We then took that and calculated the savings that someone would garner over the short and medium term.
| Apartment Size | SEER Rating | Cumulative Savings | ||
|---|---|---|---|---|
| 3 Years | 5 Years | 10 Years | ||
| 1-BR (725 sq ft) | 18 SEER | $13,108 | $13,180 | $13,360 |
| 20 SEER | $11,162 | $11,270 | $11,540 | |
| 2-BR (975 sq ft) | 18 SEER | $13,144 | $13,240 | $13,480 |
| 20 SEER | $11,216 | $11,360 | $11,720 | |
| 3-BR (1,100 sq ft) | 18 SEER | $13,162 | $13,270 | $13,540 |
| 20 SEER | $11,243 | $11,405 | $11,810 | |
Put simply, if you can find state or federal programs for higher-efficiency heat pumps, they are absolutely worth the investment when considering retrofitting or upgrading a given heating and cooling system. The savings will pay for themselves. On the other hand, if you live in a state without those programs, make sure that your new model’s SEER rating meets or exceeds the minimum requirements.
Get Heating and Cooling Services in the Detroit Metro from Oasis
Oasis HVAC, the author of this report, has been serving the Detroit Metro’s heating and cooling needs for nearly 20 years. We proudly serve the Grosse Pointe area, Harper Woods, and other suburbs from our location in St. Clair Shores.
For more information on our methodology or to schedule a service appointment for your Detroit area home, contact us using the short form or call us at (586) 854-9278. We’ve been a partner of the community since 2007 and look forward to showing why punctuality, transparency, and expertise have so many customers coming back.
If you are interested in a copy of this report, contact us here.
